Key Points
- Memecoins are leading the current altcoin rally, with Shiba Inu (SHIB) showing strong momentum.
- Despite a slight cool-off, the speculative market interest in memecoins remains strong, potentially boosting the sector.
The altcoin sector has experienced a significant increase since the Federal Reserve’s pivot in mid-September, reinforcing the market’s belief in the early stages of the much-anticipated alt season. A recurring trend appears to be emerging – the dominance of memecoins.
The founders of Glassnode have observed this trend, noting that memecoins, such as dogwifhat (WIF), Shiba Inu (SHIB), and Pepe (PEPE), are leading the early alt season with strong momentum.
SHIB Leading the Memecoin Rally
As of 27th September, 8 out of the top 10 memecoins, including SHIB, WIF, and MOG, reported double-digit gains ranging between 25% and 50% over the last 30 days of trading. SHIB stood out during this week’s rally, with an increase of 40%.
At the time of writing, SHIB’s rally has slightly cooled around the 200-day Moving Average (MA), and the Relative Strength Index (RSI) indicates overbought conditions. However, the speculative market interest in memecoins is stronger compared to other categories, which could potentially boost the sector.
Speculative Interest in Memecoins
Coinglass reports that memecoins ranked first (12%) in Open Interest (OI) in the past 24 hours, which is about double the market interest in the second-ranking sector, Gaming, with a figure of 6.8%. Memecoins also ranked third in volume over the same period, indicating a strong liquidity injection and speculator interest in the segment over the weekend.
This intense speculative interest in memecoins could potentially reinforce its market dominance again in Q3. In H1 2024, the sector was a top performer, even surpassing Bitcoin (BTC) in gains.
Currently, the segment has the highest gains on a year-to-date (YTD) basis, with impressive returns of 1160%.
